Question
Seemore Lens Company (SLC) sells contact lenses FOB destination. For the year ended December 31, the company reported Inventory of $84,000 and Cost of Goods
Seemore Lens Company (SLC) sells contact lenses FOB destination. For the year ended December 31, the company reported Inventory of $84,000 and Cost of Goods Sold of $448,000.
a.
Included in Inventory (and Accounts Payable) are $12,800 of lenses held on consignment.
b.
Included in the Inventory balance are $6,400 of office supplies held in SLC's warehouse.
c.
Excluded from the Inventory balance are $9,400 of lenses in the warehouse, ready to send to customers on January 1. SLC reported these lenses as sold on December 31, at a price of $17,800.
d.
Included in the Inventory balance are $3,700 of lenses that were damaged in December and will be scrapped in January, with no recoverable value.
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